Q&A Hero

Q: In ABC analysis, "A" items are the most tightly controlled.

Q: ABC analysis classifies inventoried items into three groups, usually based on annual units or quantities used.

Q: A principle that maintains that 80 percent of a companys sales will come from 20 percent of its customers

Q: Marketers create needs that offer unique motivations to consumers. a. True b. False

Q: What is MRO an acronym for? What is the function of MRO inventories?

Q: A collection of information about a customer, inlcuding demographic data, attitudes, preferences, and other behavioral characteristics, as defined by CRM goals

Q: Identify the four types of inventory.

Q: Educational level is the most single determinant of social class. a. True b. False

Q: What are the four functions of inventory?

Q: Explain what "decoupling" means in the context of inventory management.

Q: The individual processes that give meaning to the stimuli confronting consumers

Q: ________ inventory is material that is usually purchased, but has yet to enter the manufacturing process.

Q: Customer relationship management means different things to different businesses. a. True b. False

Q: The features or charactistics of a product or service that customers use afor comparison

Q: Inventory that separates various parts of the production process performs a(n) ________ function.

Q: Lack of in-house expertise is a major justification for using outside CRM services. a. True b. False

Q: Amazon's original concept of operating without inventory has given way to a model in which Amazon is a world-class leader in ________.

Q: An interaction between a business and its customers

Q: Which of the following is NOT one of the four main types of inventory? A) raw material inventory B) work-in-process inventory C) maintenance/repair/operating supply inventory D) safety stock inventory E) finished-goods inventory

Q: Initial CRM support efforts should be made using the website because the web developers have the most customer contact. a. True b. False

Q: Which of the following would NOT generally be a motive for a firm to hold inventories? A) to decouple various parts of the production process B) to provide a selection of goods for anticipated customer demand and to separate the firm from fluctuations in that demand C) to take advantage of quantity discounts D) to minimize holding costs E) to hedge against inflation

Q: An analysis that reveals customers most likely to buy from a firm in the future because they have made purchases recently, frequently, and in amounts that exceed some established minimum

Q: Which of the following is a function of inventory? A) to decouple various parts of the production process B) to provide a selection of goods for anticipated customer demand and to separate the firm from fluctuations in that demand C) to take advantage of quantity discounts D) to hedge against inflation E) All of the above are functions of inventory.

Q: An evoked set is a group of brands that a consumer is both aware of and willing to consider as a solution to a purchase problem. a. True b. False

Q: Which of the following statements regarding Amazon.com is FALSE? A) The company was opened by Jeff Bezos in 1995. B) The company was founded as, and still is, a "virtual" retailer with no inventory. C) The company is now a world-class leader in warehouse automation and management. D) The company uses both United Parcel Service and the U.S. Postal Service as shippers. E) Amazon obtains its competitive advantage through inventory management.

Q: A process of identifying customers that fit into smaller, more homogeneous groups

Q: Work-in-process inventory is devoted to maintenance, repair, and operating materials.

Q: A marketer must determine which motivations the consumer will perceive as acceptable to satisfy a need in a given situation. a. True b. False

Q: One function of inventory is to take advantage of quantity discounts.

Q: According to consumer information-processing theory, _____ is the final stage through which consumers progress. a. cognitive dissonance b. evaluative categorization c. post-purchase evaluation d. purchase decision Match the term with its definition a. 80/20 Principle b. Customer database c. Customer segmentation strategy d. Evaluative criteria e. Evoked set f. Perception g. Perceptual categorization h. Post-purchase dissonance i. Recency-frequency-monetary analysis j. Touch point k. Transactional relationship

Q: Which item to order and with which supplier the order should be placed are the two fundamental issues in inventory management.

Q: Evoked sets are features or characteristics of products or services that are used to compare brands. a. True b. False

Q: A major challenge in inventory management is to maintain a balance between inventory investment and customer service.

Q: Which of the following is true about Yelp.com? a. It is an online forum where customers can post reviews. b. Only negative reviews have any impact. c. Once a customer posts a negative review, the business is helpless to respond. d. All of the above are true about Yelp.com.

Q: According to the global company profile, Amazon.com's advantage in inventory management comes from its almost fanatical use of economic order quantity and safety stock calculations.

Q: The ability to enjoy one-on-one contact with customers has always been a competitive advantage for large firms. a. True b. False

Q: A manufacturing plant averaged $740 of raw materials, $230 of work-in-process inventory, and $1030 of finished goods inventory during the month. If the cost of goods sold this month amounted to $10,000, what is the inventory turnover for the month?

Q: The following data are pulled from a recent Walsh Manufacturing annual report. Assets Raw material inventory $120,000 Work-in-process inventory $50,000 Finished goods inventory $300,000 Property, plant & equipment $500,000 Other assets $200,000 Total assets $1,170,000 Condensed Income Statement Revenue $2,000,000 Cost of goods sold $600,000 Other expenses $1,000,000 Net income $400,000 Calculate: (a) Percent invested in inventory, (b) Inventory turnover, and (c) Weeks of supply.

Q: A basic idea forming the foundation of customer loyalty for small firms includes the notion that a. superior customer service always leads to customer purchases. b. customer loyalty will mean constant customer satisfaction. c. small firms possess great potential for providing superior customer service. d. customer satisfaction is being ignored by large firms.

Q: Identify three specific measures that indicate how well assets are utilized. What are the formulas for each measure?

Q: In the information search and evaluation stage, the firms principal objective is to gain market awareness. a. True b. False

Q: The ________ is a set of processes, metrics, and best practices developed by the Supply Chain Council.

Q: To establish an effective customer service program, what should be completed first? a. customer service quotient b. mystery shopper visit c. survey on customer attitudes d. Jezeks Zone analysis

Q: Which of the following is NOT one of the five parts of the Supply Chain Operations Reference (SCOR) model? A) Make B) Sell C) Plan D) Source E) Return

Q: Only three classes of needssocial, psychological, and spiritual can be connected to behavior through motivations. a. True b. False

Q: Consider a firm with an annual net income of $20 million, revenue of $60 million and cost of goods sold of $25 million. If the balance sheet amounts show $2 million of inventory and $500,000 of property, plant & equipment, how many weeks of supply does the firm hold? A) 12.50 B) 5.20 C) 2.60 D) 0.08 E) 4.16

Q: An approach that recognizes that, with every interaction, customers learn something about a company that will affect their desire to do business there in the future is known as a. perceptual categorization. b. cognitive dissonance. c. transactional relationship. d. customer experience management.

Q: Consider a firm with an annual net income of $20 million, revenue of $60 million and cost of goods sold of $25 million. If the balance sheet amounts show $2 million of inventory and $500,000 of property, plant & equipment, what is the inventory turnover? A) 12.50 B) 10.00 C) 42.00 D) 4.16 E) 20.00

Q: In some situaitons, a small business owner will have to influence need recognition; in others he may simply be able to react to needs the consumer has indentified. a. True b. False

Q: Most customer service problems are identified by a. personal observation. b. outside consultants. c. customer complaints. d. entries in a suggestion box.

Q: Benchmark firms have driven down costs of supply-chain performance.

Q: It is important to keep in touch with a customer and make a sales pitch each time. a. True b. False

Q: Of all areas of the organization, why is the supply chain especially vulnerable to ethical lapses?

Q: Nikitas decision to buy her shoes at the same shop that her boss patronizes is the result of which sociological influence? a. culture b. opinion leaders c. reference groups d. social class

Q: ________ is the process of sending returned products back up the supply chain for value recovery or disposal.

Q: Attitudes are forces that organize and give direction to the tension caused by unsatisfied needs. a. True b. False

Q: The ________ is an organization that has developed principles and standards for ethical supply management conduct.

Q: In general, a person can be an opinion leader even if he or she is not a. knowledgeable. b. visible. c. exposed to the mass media. d. nationally known.

Q: Which of the following is NOT true about reverse logistics as compared to forward logistics? A) Inventory management is not consistent. B) Distribution costs are less directly visible. C) Pricing is dependent upon many factors. D) Speed is often very important. E) Forecasting is more uncertain.

Q: Economic benefits associated with maintaining relationships with current customers include: a. Small increases in customer retention can translate into large increases in profits. b. Existing customers spend less money than new customers. c. Order processing costs are higher for current customers. d. All of these.

Q: There must be a company-wide commitment to CRM concept if CRM is to be productive. a. True b. False

Q: What term describes a supply chain that is designed to optimize both forward and reverse flows? A) closed-loop supply chain B) full-journey supply chain C) circular supply chain D) network supply chain E) recycled supply chain

Q: A customer complaint can be positive. a. True b. False

Q: In supply chain management, ethical issues: A) are particularly important because of the enormous opportunities for abuse. B) may be guided by company rules and codes of conduct. C) become more complex the more global is the supply chain. D) may be guided by the principles and standards of the Institute for Supply Management. E) All of the above are true.

Q: Molly has had repeated positive experiences with her local coffee shop. They suggest new flavors, call her by her first name, and donate to a local charity that Molly supports. Mollys experiences, as a result, contribute to the firms CRM _______. a. organizational culture b. customer cost c. value equation d. customer satisfaction

Q: The Institute for Supply Management: A) establishes laws and regulations for supply management. B) is an agency of the United Nations charged with promoting ethical conduct globally. C) publishes the principles and standards for ethical supply management conduct. D) prohibits backward integration into developing economies. E) grants Ph.D. degrees in purchasing.

Q: Post-purchase dissonance has been shown to be unrelated to customer satisfaction because it occurs after customers have satisfied their needs. a. True b. False

Q: Because the supply chain has become so electronic and automated, opportunities for unethical behavior have been greatly reduced.

Q: Explain why once revenue and total logistics costs are considered together, the optimal number of facilities in a distribution network may well increase compared to the optimal number of facilities based on total logistics costs only. Include details about the behavior of relevant cost and revenue elements.

Q: In what stage of the consumer decision making process is Josh when he becomes concerned whether his friends will enjoy the video game he downloaded? a. information search and evaluation b. need recognition c. post-purchase evaluation d. purchase decision

Q: ________ management focuses on the outbound flow of products.

Q: An investigation of culture with a narrow definitional boundary (e.g., by age, geographic location, etc.) is called perceptual categorization. a. True b. False

Q: Which of the following statements does NOT accurately explain what occurs when the number of facilities in a distribution network increases? A) response time decreases B) profit first increases, then decreases C) total logistics costs first decrease, then increase D) inventory costs increase E) response time first decreases, then increases

Q: Information taken from warranty cards would be stored in which category of a customer profile? a. Personal information b. Complaints c. Lifestyle data d. Transactions

Q: As the number of facilities increases, total logistics costs tend to follow a curve that first declines, then rises. Why? A) Transportation and inventory costs first decline steeply, then rise, while facility costs always rise. B) Transportation costs always decline, but eventually the rise in facility and inventory costs outweigh the declining transportation costs. C) Facility costs first decline steeply, then rise, while transportation and inventory costs always rise. D) Transportation costs first decline steeply, then rise, while facility and inventory costs always rise. E) Inventory costs first decline steeply, then rise, while transportation and facility costs always rise.

Q: Because culture drastically affects the behavior patterns and values of people, it has tremendous impact on the purchase and use of products. a. True b. False

Q: List the three basic types of acquisitions and identify the purpose of each type.

Q: What three logistics-related costs are relevant when analyzing the choice of number of facilities in a distribution network? A) inventory costs, production costs, and transportation costs B) inventory costs, production costs, and facility costs C) inventory costs, transportation costs, and facility costs D) facility costs, production costs, and transportation costs E) facility costs, inventory costs, and marketing costs

Q: List and describe three types of LBO sales to financial buyers.

Q: Designing distribution networks to meet customer expectations suggests what three criteria? A) rapid response, service, and cost B) rapid response, product choice, and service C) product choice, cost, and service D) cost, process choice, and service E) rapid response, cost, and process choice